Focus Area: Legal
Staff Contact: Ron Shaver & Amanda Stanley
Subject: Consideration of the property and casualty insurance programs for 2026.
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Consideration of the property and casualty insurance programs for 2026.
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Summary:
The City’s property and casualty insurance policies expire at the end of 2025. The City’s insurance broker, Arthur J. Gallagher Risk Management Services (Gallagher) was directed to negotiate competitive renewal terms with the incumbent carriers on all lines of coverage, in addition to approaching alternative markets. All proposals have been received and reviewed by City staff and the City’s risk management consultant, Charlesworth Consulting.
Attachment A is a table comparing the current and proposed insurance program for 2026.
Property
Property insurance is recommended to renew with Chubb (Travelers for equipment breakdown) at an approximately 10% premium decrease. This includes an increase in the general deductible from $50,000 per occurrence to $100,000 per occurrence which generated a net premium saving of $30,000. Based on the City’s size and exposures, it was determined that this was good value and is similar to peer cities.
Liability Insurance
Liability insurance is recommended to renew with Old Republic Insurance Company at an 18% increase. All terms and conditions remain unchanged, and the increase is primarily attributed to an increase in ratable exposures such as budgeted expenditures and vehicles.
The total premium increase for all coverages is 2.89% from $1,379,798 to $1,419,716.
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Financial Impact:
Adequate funding to cover all renewal premiums is contained in the Risk Management Fund.
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Action Needed:
Approve the 2026 property and casualty insurance premiums in the amount of $1,419,716.
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Attachment(s):
A. 2025-2026 Olathe Insurance Renewal Comparison